BUZZ-LendingClub slumps after Q1 outlook falls short of expectations

Reuters
01-29
BUZZ-<a href="https://laohu8.com/S/LC">LendingClub</a> slumps after Q1 outlook falls short of expectations

** Shares of digital bank LendingClub LC.N fall 23.4% to $12.90 premarket

** LC late Tuesday forecast Q1 loan originations between $1.8 bln to $1.9 bln and pre-provision net revenue of $60 mln to $70 mln

** JPM says Q1 forecast was a touch lighter than expected hurt by normal seasonal softness and increased marketing spend, which appears to have spooked traders

** KBW says investors were clearly holding expectations for a much stronger outlook, but believes the reaction to be overblown as LC has historically been extremely conservative with its forecast

** Brokerage believes there could be material upside to LC's forecast if the Fed were to cut more aggressively given the firm's current outlook assumes only a single 25 basis points rate cut in the back half of 2025

** LC stock soared 85.2% in 2024

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))

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